What it Means to Freeze Credit Report
Though not every state in the US allows it, many states do let individuals freeze their credit report in order to ensure that no fresh credit can be issued in the names of the individual doing the freezing. However, even then, in states such as Texas and Illinois as well as Washington and even Vermont, individuals can only freeze their credit report. This is provided they have been victimized by identity thieves who, nevertheless, are different from what is practiced in states such as North Carolina, New Jersey, New York as well as Maine and Louisiana.
No One Can Establish Credit in Your Name
However, in the event that an individual chooses to place fraud alert on their credit report, all states permit such actions. This, in turn, will result in forcing creditors to first contact an individual and get their permission before issuing credit to them. In any case, when an individual freezes their credit report, it prevents anyone else from opening credit in that individual's name. So, people who are thinking about lending you money, insurers, and even employers will not be able to gain access to that individual's credit report.
However, by freezing your credit report, you will be able to prevent others including prospective employers from viewing your credit report, though at the same time you can't get fresh credit either. Thus, the effect of freezing your credit report is that no one else can succeed in getting credit in the name of the individual who has frozen their credit report. So, even if a criminal gains access to your personal information, it will not enable him to take credit in the name of an identity theft victim.
Of course, to freeze your credit report, you would need to do a little more than place the credit report in a freezer. Although, at the same time in most states you can freeze your credit report without having to pay for such service, provided you are a victim of identity theft. However, if you are freezing your credit report as a precautionary measure, you will have to pay approximately ten dollars as fee for each frozen credit report.
Also, there is no charge in case you wish to lift the credit report freeze permanently, though for a temporary lift you could have to pay a small fee, even if you have been victimized by identity thieves. What's more, different credit reporting agencies have their own procedures that you will need to follow in order to affect the freeze. So, check with the agency before proceeding further.
